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Sale of Goods Ordinance (Chapter 26)
Section 4 Sale of Goods Ordinance (Cap.26)
(1)

Capacity to buy and sell is regulated by the general law concerning capacity to
contract, and to transfer and acquire property:
Provided that where necessaries are sold and delivered to an infant or minor, or
to a person who, by reason of mental incapacity or drunkenness, is incompetent
to contract, he must pay a reasonable price therefore.

(2)

In this section, "necessaries" () means goods suitable to the condition in


life of such infant or minor or other person, and to his actual requirements at the
time of the sale and delivery.

Section 14 Implied undertaking as to title etc.


(1)

In every contract of sale, other than one to which subsection (2) applies, there
is(a)

an implied condition on the part of the seller that in the case of the sale,
he has a right to sell the goods, and in the case of an agreement to sell, he
will have a right to sell the goods at the time when the property is to pass;
and

(b)

an implied warranty that the goods are free, and will remain free until
the time when the property is to pass, from any charge or encumbrance
not disclosed or known to the buyer before the contract is made and that
the buyer will enjoy quiet possession of the goods except so far as it may
be disturbed by the owner or other person entitled to the benefit of any
charge or encumbrance so disclosed or known.

(2)

In a contract of sale , in the case of which there appears from the contract or is to
be inferred from the circumstances of the contract an intention that the seller
should transfer only such title as he or a third person may have, there is(a)

an implied warranty that all charges or encumbrances known to the


seller and not known to the buyer have been disclosed to the buyer before
the contract is made; and

(b)

an implied warranty that neither(i)

the seller; nor

(ii)

in a case where the parties to the contract intend that the seller
should transfer only such title as a third person may have, that person;
nor
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(iii)

anyone claiming through or under the seller or that third person


otherwise than under a charge or encumbrance disclosed or known to
the buyer before the contract is made, will disturb the buyer's quiet
possession of the goods.

Section 15 Sale by Description


(1)

Where there is a contract for the sale of goods by description, there is an implied
condition that the goods shall correspond with the description; and if the sale is
by sample, as well as by description, it is not sufficient that the bulk of the goods
corresponds with the sample if the goods do not also correspond with the
description.

(2)

A sale of goods shall not be prevented from being a sale by description by reason
only that, being exposed for sale or hire, they are selected by the buyer.

Section 16 Implied Undertaking as to Quality or Fitness


(1)

This section provides for the circumstances in which, and the extent to which,
there is any implied condition or warranty as to the quality or fitness for any
particular purpose of goods supplied under a contract of sale.

(2)

Where the seller sells goods in the course of a business, there is an implied
condition that the goods supplied under the contract are of merchantable
quality, except that there is no such condition(a)

as regards defects specifically drawn to the buyer's attention before the


contract is made; or

(b)

if the buyer examines the goods before the contract is made, as regards
defects which that examination ought to reveal; or

(c)

if the contract is a contract for sale by sample, as regards defects which


would have been apparent on a reasonable examination of the sample .

(3)

Where the seller sells goods in the course of a business and the buyer, expressly
or by implication, makes known to the seller any particular purpose for which the
goods are being bought, there is an implied condition that the goods supplied
under the contract are reasonably fit for that purpose, whether or not that is a
purpose for whic h such goods are commonly supplied, except where the
circumstances show that the buyer does not rely, or that it is unreasonable for
him to rely, on the seller's skill or judgment.

(4)

An implied condition or warranty as to quality or fitness for a particular


purpose may be annexed to a contract of sale by usage.
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(5)

Subsections (1), (2), (3) and (4) apply to a sale by a person who in the course of
a business is acting as agent for another as they apply to a sale by a principal in
the course of a business, except where that other is not selling in the course of a
business and either the buyer knows that fact or reasonable steps are taken to
bring it to the notice of the buyer before the contract is made.

(6)

In the application of subsection (3) to an agreement for the sale of goods under
which the purchase price or part of it is payable by installments any reference to
the seller shall include a reference to the person by whom any antecedent
negotiations are conducted.

(7)

In subsection (6) "antecedent negotiations" () means any negotiations


or arrangements with the buyer whereby he was induced to make the agreement
or which otherwise promoted the transaction to which the agreement relates.

(8)

Except as provided by this section and section 17, and subject to the provisions
of any other enactment, there is no implied condition or warranty as to the
quality or fitness for any particular purpose of goods supplied under a contract of
sale.

Section 17 - Sale by sample


(1) A contract of sale is a contract for sale by sample where there is a term in the
contract, express or implied, to that effect.
(2) In the case of a contract for sale by sample (a)

there is an implied condition that the bulk shall correspond with the sample
in quality;

(b)

there is an implied condition that the buyer shall have a reasonable


opportunity of comparing the bulk with the sample;

(c)

there is an implied condition that the goods shall be free from any defect,
rendering them un-merchantable, which would not be apparent on
reasonable examination of the sample.

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